Svmuu News Coinbase Chief Legal Officer Paul Grewal posted that Prelogar, a former U.S. Deputy Attorney General representing the Coalition for Prediction Markets, has filed an amicus curiae brief in support of Kalshi with the U.S. Court of Appeals for the Sixth Circuit, calling it a “masterpiece.”Paul Grewal noted that the brief not only outlines the historical context of the U.S. Commodity Futures Trading Commission’s exclusive regulatory authority over prediction markets but also presents three key arguments:
1. Prediction markets uniquely aggregate market information and transform it into simple price signals collectively derived by market participants.
2. Prediction market users trade based on the prices that market participants are willing to accept; they have no control over contract prices and bear a legal obligation to provide users with fair access to contracts.
3. U.S. state laws are not suited to regulating prediction markets because their core objectives do not include maintaining fair markets, price discovery, information aggregation, risk hedging, or preventing market manipulation.